“My view had always been that I signed up reps to provide me with more efficient, productive coverage than I could ever achieve with a direct sales force. Their job was to sell products and communicate market information back to me. In turn, my job was to provide them with the products and support they need to do their jobs, not to mention communicate with them and accurately pay their commissions on time.”

As a result, when a couple of his reps brought forth the idea of a manufacturer rep council, he says his first reactions were: “I can’t think this is a good idea. How can I ever benefit with them meddling in my business and telling me what to do?”

Well if times changes, so did this manufacturer’s perceptions of the value of a rep council. “I bought in to their suggestion — but with a distinct lack of enthusiasm. I guess I figured if I gave them lip service — let them do their thing — they’d eventually lose interest in the whole idea.”

But the more he watched and listened, the more he learned — and the more he grasped the concept. “The main thing that hit me was that these reps were concerned about improving our relationships and building a solid foundation that would benefit us and ultimately the customer.”

Now, six years later, the council is still going strong. Over the years the manufacturer has firmed up some of his logistical practices that contribute to the council’s success:

• Scheduling — The manufacturer recognizes that scheduling of council meetings should be dependent upon how active the group is and how many items reside on its agenda. “However, I’ve become a firm believer in councils remaining active between their formally scheduled meetings. That means members should be in touch with each other and their fellow reps gathering comments, suggestions, problems, etc., that the group can address during a regularly scheduled event.”

Location — While meetings don’t necessarily have to occur at the factory, “There is a real benefit to conducting them nearby. By doing that, we guarantee that factory personnel can be readily available if a subject crops up that they should be involved with.”

• Expenses — “If there is any way I as a manufacturer can show the rep how much I value his time and his contributions, it’s by picking up all expenses related to a rep council meeting. Remember the council meeting should not be confused with a sales meeting. I’ve asked various reps to give up their valuable time in the field representing me and their other principals in order to engage in an exercise that we hope will benefit all of us. The least I can do is to show my appreciation for their time and effort by picking up expenses.”

• Rep Input — Rep input for council meetings is absolutely critical. “In speaking with other manufacturers who’ve had some experience with rep councils, I’ve heard that manufacturers who want everything their way will never succeed. That’s why I regularly communicate with my council members and ask them what subjects they feel must be addressed. At the same time, I ask them to check with other reps who aren’t on the council to learn what they feel should be included.”

“The main thing that hit me was that these reps were concerned about improving our relationships and building a solid foundation that would benefit us and ultimately the customer.”

• Agenda — Establishing the agenda should definitely be a joint effort, according to the manufacturer. “Having said that, I always keep in mind that if I’m the one who okayed the idea of a rep council to begin with, then I should have major input into the agenda.

“At the same time, I can’t overstate the importance of the rep council operating within the parameters of a well-drawn-out agenda. I guess I keep in mind the old adage that if you go on a trip without a map, you’re never going to reach your destination. So too is it with a rep council. If you don’t state the reason for your meeting, you’re just wasting time.”

• Follow up — “At the completion of a council meeting the manufacturer should be the one in charge of writing up the meeting’s minutes and disseminating them to the group. An important part of this job is to detail any follow-up responsibilities together with any deadlines that have to be met.”

In summation, the manufacturer offered the following advice to any rep who might be asked to serve on his manufacturer’s rep council: “Take it as a compliment. If your manufacturer offers you serious reasons why a council should exist and accompanies that with a well-thought-out agenda of mutual concerns, your time is going to be well spent. It can only benefit you, the manufacturer, your fellow reps — not to mention your customers.”

Remember the council meeting should not be confused with a sales meeting.

 

Who Picks Up The Tab?

Among the many interesting discussions that take place on the MANA LinkedIn discussion board is: What is the accepted protocol (if any) for picking up the meal tabs when traveling with a principal in your territory?

This is a subject that has been addressed many times in this publication. A fresh look at the subject brought a number of responses from both manufacturers and reps. For instance, from the rep side:

• “Normally our policy is to pick up the majority of the dinner tabs. The feeling is that the manufacturer has gone to the expense of sending a person into the field and the person is also away from family, etc. The least we can do is to pick up a dinner tab. I will add, however, that it is nice to be able to let the principal pick up the occasional tab. If a customer is included, we try to pick up the tab 100 percent of the time.”

• “Generally, we’ll act as the principal’s host during a territory visit, which means we cover the meals. If a meal recognizes either excellent sales performance by us or is meant to show our joint appreciation to a customer for their business, the principal will act as host and cover the meal expense. There are exceptions, of course, but this is how it usually plays out. Of course, as with friends, sometimes there is a bit of gentle arm-wrestling over the tab.”

• “If they are in our territory we usually pick up the tab. If we are visiting them at their factory, they usually pick up the tab.”

And from the manufacturer’s side:

• “When I was a factory guy, we were told to pick up dinners for sure, lunches could go either way. If there was a customer present, we picked up the tab. The factory’s position was it was a reward for work well done and the hassle of having a factory guy in territory for three to five days.”

• “Speaking from a principal’s perspective, my personal policy is that we — the manufacturer — would pay for all meals (with or without clients) incurred while we accompany a rep on sales calls. I have included this point of view as official company policy in Expense Control Guideline documents prepared for my teams at several manufacturers. Naturally, a rep will ‘insist’ on covering a meal now and then, and we accept his/her friendly generosity. But they know we appreciate this gesture, as it is not expected.

“But this topic prompts me to offer another comment. I have always encouraged my sales teams to avoid most (not all) customer meetings that are scheduled as meals. I’ve done this not to control expenses but to maximize sales results. Yes, I know this will sound odd to many of you, but my position is a meal is not the correct locale for a sales presentation. We are businesspeople and we need a business setting to show products, present information, answer questions, field objections, and more. And we must do this in the least amount of time as possible. A meal at a restaurant with a customer, especially a prospective one, will waste more time, and be less productive, than an in-office business meeting.”

Editor’s note: These excerpts from a more extensive discussion on the subject of who pays for meals are offered as a sampling of the types of subjects that can be found by MANA members who participate in the MANA LinkedIn discussion groups. At any given time any number of subjects related to the manufacturer-rep relationship can be found there. Association members are encouraged to join and participate.

Secrets of a Successful Field Visit

If the previous item concerned itself with who covers expenses during a manufacturer’s visit to the territory, there’s more to a successful visit than picking up the tab. For instance, manufacturers who have enjoyed successful visits to the field in the past maintain that there are a couple of practices that have to be followed in order to give yourself that best chance for success. For instance:

• Advance notice — Nothing short of 30 days’ notice for a field visit is recommended if the principal and rep are to work effectively in the field together.

• A detailed itinerary — The principal should let the rep know not only what he hopes to accomplish, but also he should specify key customers he would like to see and details concerning what he hopes to accomplish with each of those customers.

• Setting goals — Finally, a real key to an effective visit is for the principal and rep to agree on joint, reachable goals that can be met by each of them.